Sacci warns of declining trade conditions in South Africa amidst economic uncertainty

THE South African Chamber of Commerce and Industry (Sacci) has issued urgent warnings following the release of its Trade Conditions Survey for June, which revealed a concerning contraction in trade conditions.

- YOGASHEN PILLAY

Sacci on Wednesday reported that the trade environment was increasingly strained by global trade uncertainty, coupled with domestic economic challenges such as sluggish growth and soaring unemployment.

The survey highlighted a significant downturn: trade conditions fell from a promising positive stance in March and April back into negative territory by May and June.

According to Sacci, 56% of respondents reported positive trading conditions in March, yet this figure reduced dramatically with only 46% maintaining optimism in May and June.

"Despite the downturn, a slight majority—51%—indicated that trade conditions in June 2025 were better than during the same period in 2024," noted Sacci.

With regard to future prospects, Sacci observed a diminutive drop in optimism as well as 62% of respondents in June anticipated an improvement in trade conditions over the coming six months compared to a more encouraging 69% in May.

The data suggested a growing unease regarding the short-term trade outlook, reflecting concerns over the sluggish local economy and external uncertainties.

Sacci attributed the unfavourable trade outlook to the disappointing performance of the domestic economy, which has been compounded by the tactical responses anticipated from global trading relations.